Rejecting New Technology: The Case of Genetically Modified Wheat

Posted: 8 May 2006

See all articles by Derek Berwald

Derek Berwald

University of California, Davis - Giannini Foundation of Agricultural Economics

Colin A. Carter

University of California, Davis - Department of Agricultural and Resource Economics

Guillaume P. Gruère

International Food Policy Research Institute

Abstract

Canada has stringent regulations covering the release of new wheat varieties, but the United States has virtually no regulations in this area. Monsanto Co. developed genetically modified (GM) spring wheat for North America, and made a commitment to the U.S. industry to release this new technology simultaneously in both Canada and the United States, or not at all. The Canadian regulatory bias against new varieties acted as a veto against GM wheat and caused Monsanto to shelve the technology in both countries in 2004. Substantial economic rents were foregone in North America due to the rejection of this new technology.

Suggested Citation

Berwald, Derek and Carter, Colin A. and Gruère, Guillaume P., Rejecting New Technology: The Case of Genetically Modified Wheat. American Journal of Agricultural Economics, Vol. 88, No. 2, pp. 432-447, May 2006. Available at SSRN: https://ssrn.com/abstract=896343 or http://dx.doi.org/10.1111/j.1467-8276.2006.00869.x

Derek Berwald

University of California, Davis - Giannini Foundation of Agricultural Economics

UC Davis
Davis, CA 95616
United States

Colin A. Carter

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States

Guillaume P. Gruère (Contact Author)

International Food Policy Research Institute ( email )

2033 K Street, NW
Washington, DC 20006
United States

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